Massachusetts congressman Barney Frank, the chairman of the House Financial Services Committee, said Friday that Bank of America Corp.'s planned buyout of Countrywide Financial Corp. "could be a positive development in the subprime crisis."
However, Frank urged Countrywide to be more aggressive in working with borrowers to help avoid foreclosures.
He also urged Countrywide Chief Executive Angelo Mozilo, who is reportedly eligible to walk away from the deal with $115 million, to donate a "substantial portion of the $150 million he has collected over the last several years to nonprofits and other institutions that are helping us deal with the problem he helped to create."
